Conference Theme Track B: IS for Resilience

Loading...

Media is loading
 

Paper Number

1712

Paper Type

Completed

Description

The research presents an agent-based model that integrates a redistribution algorithm with the competition-based public blockchain reward scheme, relying on economic theories inside and outside the market. The analysis results show that pure liberalism embedded in blockchain leads to high wealth inequality, which is hard to change because the algorithm also divides the computational resource for the wealth increase. However, wealth inequality may be alleviated if the reward scheme adopts the redistribution as the policy complementing the liberal market in the modern economy. Those findings help us understand mechanisms of inequality generated by the new digital divide while calling for a more responsible blockchain protocol design to build a resilient society.

Comments

02-Resilience

Share

COinS
 
Dec 12th, 12:00 AM

Blockchain Unpacked: An Agent-Based Model of Economic Inequality and Its Implications for Technology Governance in Blockchain

The research presents an agent-based model that integrates a redistribution algorithm with the competition-based public blockchain reward scheme, relying on economic theories inside and outside the market. The analysis results show that pure liberalism embedded in blockchain leads to high wealth inequality, which is hard to change because the algorithm also divides the computational resource for the wealth increase. However, wealth inequality may be alleviated if the reward scheme adopts the redistribution as the policy complementing the liberal market in the modern economy. Those findings help us understand mechanisms of inequality generated by the new digital divide while calling for a more responsible blockchain protocol design to build a resilient society.

When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.